RISE IN CRUDE PALM OIL (CPO) PRICE TO RECORD HIGH BRINGS
HUGE PROFITS TO SMALLHOLDERS NATIONWIDE
1. For the first time in the history of the national palm oil industry, the price of Crude Palm Oil (CPO) hit an all-time-high of RM5,750 per tonnes for two consecutive days on Feb 3 & 4, bringing great news and huge profits to about 400,000 smallholders nationwide.
2. This increase is a testament to the commitment and dedication of the Ministry of Plantation Industries and Commodities (MPIC) through the Malaysian Palm Oil Board (MPOB) and Malaysian Palm Oil Council (MPOC), together with the Malaysian Palm Oil Certification Council (MPOCC) to help the rakyat through various initiatives and Government policies.
3. MPIC will continue to strive to expand the Malaysian palm oil market to overseas markets, especially in West Asia such as in Turkey and Saudi Arabia, given the increase in Malaysian palm oil exports to Turkey with a total 703,588 tonnes in 2021 and Saudi Arabia’s commitment to increase Malaysian palm oil imports to 500,000 tonnes which is estimated to reach RM1.5 billion in value, this year.
4. Recently, following my visit and the MPIC delegation to Saudi Arabia, several memorandums of understanding (MoU) were signed with several companies including the Savola Group, which is the largest importer and distributor of edible oil in Saudi Arabia.
5. In fact, MPIC entered into three areas of cooperation, including the construction of a storage tank terminal in Jeddah; making Saudi Arabia a hub for the reexporting of Malaysian palm oil; and a joint campaign to promote the benefits of Malaysian palm oil to their country and the world. I am confident the country's palm oil industry will continue to thrive in line with the ongoing efforts by this Ministry.
6. Although at this point, there are sanctions imposed by the United States (US) and the European Union (EU) on Malaysian palm oil, MPIC will continue to work hard to ensure the long-term interests of the palm oil industry are safeguarded and will continue assisting palm oil smallholders and other stakeholders.
7. Once again, I call upon all Malaysians to come together with the Ministry in an effort to address anti-palm oil propaganda by Western countries that is clearly aimed at bringing down our country’s palm oil industry. We need to make sure the country's palm oil industry continues to be one of the largest contributors to the national economy.
DATUK HAJAH ZURAIDA KAMARUDDIN
MINISTER OF PLANTATION INDUSTRIES AND COMMODITIES
5 FEBRUARI 2022